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why your construction business needs ERP software

Successful commercial contractors have turned to new technologies like ERP software for construction to make their operations more efficient and more productive. ERP Software, which stands for Enterprise Resource Planning software, helps contractors manage day-to-day-accounting, financial planning, and project management processes.

As the backbone of commercial construction IT infrastructure, ERP software facilitates seamless communication and coordination across departments, automates workflows, and provides valuable analytic and insights so leaders can make informed decisions when it matters. Amid evolving technology and increasingly complex business needs, contractors need ERP software that’s flexible, reliable, and made for the specific needs of the construction industry.

We’ll examine the optimal features that commercial contractors should look out for when evaluating an ERP solution that will support their businesses.

Access Anywhere and Anytime

Most ERP solutions provide real-time, browser-based access to applications and integrated data (a single source of truth). This means that users who are in the field, office, or on the move can perform their daily tasks without interruption. Every member of your team can view the same data and manage critical business processes seamlessly. Tasks like checking off items on a list, approving processes and payments, assigning workflows, and collaborating with owners, project managers, and the finance team can be accomplished within a single system. Using a single database allows you to eliminate department silos, reduce time consuming duplicate data entry, and streamline labor-intensive processes. It allows access to real-time data and enhances communication among key stakeholders.

Interactive user interfaces (UIs) on top of a single database platform drive productivity and efficiency because users can quickly, securely, and dynamically view data. Finally, the ease of data availability provides valuable information to guide important decisions.

Business Intelligence and Analytics

Most ERPs offer some level of business intelligence capabilities, but the best ERPs deliver critical data in a visually understandable format, regardless of its complexity. An effective ERP provides its own business intelligence and analytics software, without relying solely on third-party tools to access information from the database. It presents data in an easily understandable format that can be reported on without needing extensive reporting skills. Users can access reporting and data views anywhere and anytime. They can also easily create their own data views and dashboards, leading to significant productivity gains and smarter business decisions.

Streamlining with Workflows

In the right setting, workflows automate all processes, eliminating paper-based, manually intensive administrative tasks. They unify departments to accomplish approvals, mitigate risks, and capture and share documents using data from a single database platform. Folders can be used to search, store, capture, and assign documents into workflows, supported by enterprise-class content management systems on top of the database. These content management solutions with workflows offer a one-stop shop experience where content is organized and stored, and correspondence is shared, stored, and captured for future use.

The Power of Forms

Forms are often overlooked, but they are a powerful tool for collecting information from the field in an electronic format. This input is delivered directly into the ERP database tables, where it can be used for reporting, workflows, accounting, and more. Forms can eliminate many manual processes and duplicated efforts, allowing for greater financial control and more accurate forecasting.

API Integrations

Even the most feature-rich ERP may need to connect with specialized applications like certified payroll processing or bid estimates and management. The right ERP solution offers real-time, two-way API-based integration with third-party solutions. An API integration can add significant value to the company’s operations and financial management activities.

Overall Value

Not all ERP software is valuable for contractors. Some lack construction-specific features, others aren’t flexible enough to support unique business processes, and some fail to present business-critical data in an easily accessible, understandable, and reportable format. The right ERP empowers users to perform their daily tasks efficiently by providing access to real-time data and dynamic workflows. It allows businesses to customize the ERP applications to fit their processes and strategies, rather than forcing them to change how they operate due to the software’s limitations.

Steven Gross, vice president of client solutions, Computer Guidance Corp., recently took time out of his busy schedule to catch up with Constructech Editorial Director Peggy Smedley to talk about the importance customer environments, the value of workflows, and how emerging technology solutions are impacting construction.

Peggy Smedley: What are some of the biggest needs in the construction industry today?

(Steven Gross): Efficient and integrated capture of critical information from the field. This information should only be entered once, it must be captured on a timely basis, and be subjected to the necessary controls to ensure accuracy. It should then automatically flow to the system of record so that all users are operating from the same playbook. Off-line spreadsheets and disparate systems requiring re-entry of the same data are a recipe for inaccuracy and lower levels of productivity and profit margin.

Workforce tracking. With the scarcity of available skilled workers that has plagued the construction industry since the pandemic, software to easily on-board new employees, and to track and manage them from that point forward is more important than ever.

Stringent controls over procurement of materials and services. Whether purchasing is centralized or in the hands of project management, efficient and accurate tracking of requirements, pricing, delivery schedules, and compliance items are key to efficiently managing projects. Workflows should be in place to electronically identify requirements, approve them, and communicate with vendors. And of course, this information must flow directly into the system of record as it directly impacts project performance.

(PS): Is worker productivity a big priority? If so, why?

(SG): Absolutely. There is no industry more directly impacted by worker productivity than construction. Productivity directly impacts both profit margins and the project schedule. The adage “time is money” applies more directly to construction than many other industries.

(PS): How can construction companies maximize productivity and profitability with technology?

(SG): Through accurate and timely reporting of actual levels of productivity (as in units complete per man hour) as compared to estimated. Construction should know the man hours and/or resources required to complete a task and be able to track actual performance on a frequent basis—ideally daily or weekly. To do this they need software tools and workflows in place for accurately capturing this performance data and pushing it to their system of record for timely reporting. Once these workflows are in place, management will have the tools to manage the work in ways that impact margins and profits overall.

(PS): Mission-critical data is central to all of this. How can companies capture and manage this today?

(SG): In short, effective, easy to use software tools for field users. Construction firms should have software in place to capture man hours, quantities installed, procurement requirements affecting committed cost and potential changes to project budget and contract price. This data must flow to the system of record on a timely basis.

(PS): Is security a priority? How can we secure all this?

(SG): Security is a very high priority. Ransomware attack occurrences have increased exponentially during the last two years and construction companies large and small have become targets—especially those firms that maintain systems and server equipment in-house. Priority one should be to migrate to comprehensive ERP (enterprise-resource planning) software in the cloud, which inherently provides much stronger security and protection against attacks such as this.

(PS): What should construction companies do now to best prepare for what comes next?

(SG): Invest in software and related infrastructure that is expandable and adaptable to future requirements. These tools should support future growth objectives, provide the proper levels of security, and be able to integrate with other third-party software tools and do all of the field data capture described above. If these are in place and are running smoothly, they will be well prepared for evolving changes in the construction vertical market and in technology.

More about the Guest:
Steven Gross, vice president of client solutions, is responsible for leading initiatives designed to maximize the effectiveness and utilization of Computer Guidance software applications at customer environments. His focus is on assisting Computer Guidance customers in realizing the highest levels of ROI from the Computer Guidance eCMS enterprise resource planning solution by delivering expert review and analysis of system usage, gap analysis, and best practices consulting.

Steven Gross, vice president of client solutions, Computer Guidance Corp., recently took time out of his busy schedule to catch up with Constructech Editorial Director Peggy Smedley to talk about the importance customer environments, the value of workflows, and how emerging technology solutions are impacting construction.

Peggy Smedley: What are some of the biggest needs in the construction industry today?

(Steven Gross): Efficient and integrated capture of critical information from the field. This information should only be entered once, it must be captured on a timely basis, and be subjected to the necessary controls to ensure accuracy. It should then automatically flow to the system of record so that all users are operating from the same playbook. Off-line spreadsheets and disparate systems requiring re-entry of the same data are a recipe for inaccuracy and lower levels of productivity and profit margin.

Workforce tracking. With the scarcity of available skilled workers that has plagued the construction industry since the pandemic, software to easily on-board new employees, and to track and manage them from that point forward is more important than ever.

Stringent controls over procurement of materials and services. Whether purchasing is centralized or in the hands of project management, efficient and accurate tracking of requirements, pricing, delivery schedules, and compliance items are key to efficiently managing projects. Workflows should be in place to electronically identify requirements, approve them, and communicate with vendors. And of course, this information must flow directly into the system of record as it directly impacts project performance.

(PS): Is worker productivity a big priority? If so, why?

(SG): Absolutely. There is no industry more directly impacted by worker productivity than construction. Productivity directly impacts both profit margins and the project schedule. The adage “time is money” applies more directly to construction than many other industries.

(PS): How can construction companies maximize productivity and profitability with technology?

(SG): Through accurate and timely reporting of actual levels of productivity (as in units complete per man hour) as compared to estimated. Construction should know the man hours and/or resources required to complete a task and be able to track actual performance on a frequent basis—ideally daily or weekly. To do this they need software tools and workflows in place for accurately capturing this performance data and pushing it to their system of record for timely reporting. Once these workflows are in place, management will have the tools to manage the work in ways that impact margins and profits overall.

(PS): Mission-critical data is central to all of this. How can companies capture and manage this today?

(SG): In short, effective, easy to use software tools for field users. Construction firms should have software in place to capture man hours, quantities installed, procurement requirements affecting committed cost and potential changes to project budget and contract price. This data must flow to the system of record on a timely basis.

(PS): Is security a priority? How can we secure all this?

(SG): Security is a very high priority. Ransomware attack occurrences have increased exponentially during the last two years and construction companies large and small have become targets—especially those firms that maintain systems and server equipment in-house. Priority one should be to migrate to comprehensive ERP (enterprise-resource planning) software in the cloud, which inherently provides much stronger security and protection against attacks such as this.

(PS): What should construction companies do now to best prepare for what comes next?

(SG): Invest in software and related infrastructure that is expandable and adaptable to future requirements. These tools should support future growth objectives, provide the proper levels of security, and be able to integrate with other third-party software tools and do all of the field data capture described above. If these are in place and are running smoothly, they will be well prepared for evolving changes in the construction vertical market and in technology.

More about the Guest:
Steven Gross, vice president of client solutions, is responsible for leading initiatives designed to maximize the effectiveness and utilization of Computer Guidance software applications at customer environments. His focus is on assisting Computer Guidance customers in realizing the highest levels of ROI from the Computer Guidance eCMS enterprise resource planning solution by delivering expert review and analysis of system usage, gap analysis, and best practices consulting.